Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Emerging Markets Sector Titans Indexes. The new index series measures the performance of leading emerging-market companies in each of 11 sectors.
The new indexes have been licensed to Emerging Global Advisors, LLC to serve as the basis of exchange-traded funds (ETFs). Two ETFs based on the Dow Jones Emerging Markets Oil & Gas Titans 30 Index and Dow Jones Emerging Markets Metals & Mining 30 Index are available today on NYSE Arca.
The Dow Jones Emerging Markets Sector Titans index family includes a composite index, 10 industry indexes as defined by the Industry Classification Benchmark (ICB) and one customized index for metals and mining.
"It is important that market participants continue to identify new avenues of diversification in these challenging economic times. The Dow Jones Emerging Markets Sector Titans Indexes take a sector-based approach to tracking emerging-markets stocks, and measure the performance of the largest and most liquid companies in these developing countries," said Michael A. Petronella, president, Dow Jones Indexes.
The index universe is defined as all stocks in the Dow Jones Emerging Markets Total Stock Market Index, which is a broad benchmark of companies in 35 emerging market countries. Stocks are first ranked by float-adjusted market capitalization, and the top 60 companies per Industry or Supersector are chosen for the selection list.
The companies in each selection list are then ranked by float-adjusted market capitalization, revenue and net profit. A final rank is determined by weighting the ranks for float-adjusted market capitalization at 60%, revenue at 20% and net profit at 20%. The top 30 companies by final rank are selected as index components.
The Dow Jones Emerging Markets Sector Titans Composite Index represents the top 10 companies by float-adjusted market capitalization of each of the 10 industry indexes.
As of May 20, 2009, the Dow Jones Emerging Markets Sector Titans Composite Index is up 38.87% year to date.
The Dow Jones Emerging Markets Sector Titans Indexes are reviewed annually in June. The indexes are weighted by float-adjusted market capitalization. Within each index, individual stocks' weightings are capped at 10% of the index's total float-adjusted market capitalization. Estimated daily back-tested history is available back to December 30, 2005.
For more information, please visit the Dow Jones Indexes Web site at www.djindexes.com.